VB Chapt. 4 Capitalism: an economic system based on the free market and individual competition for profits.(P. 104)Central Bank: a kind of sort of government bank that loans imaginary money to real banks (P.129)Currency: a universally accepted “placeholder” between trades of all the myriad different forms of real wealth, simplifying trade and enabling the fractionalization of whole goods. (P.129)Deflation: Situation in which the number of currency units is falling relative to available wealth. (P.133) Enlightened self-interest: The idea that people will restrain their self interest in recognition of the need to preserve a common resource (P.108) Federal Reserve rate: The interest rate the Federal reserve charges on loans to banks (P.133)Feudalism: An economic system under which peasants raise crops and livestocks on small plots within the landlord’s estate and are obligated to give a substantial percentage of their production to the landlord in exchange for protection. (P.115)Humanist: An idealist who is interested and motivated by concern for the broader human condition and the quality of people’s lives. (P.115)Inflation:Situation in which the number of currency units in circulation is increased measured relative to the real stuff of value out there, which reduces the value people place upon each unit of the currency. (P.129)Laissez-faire capitalism: An economic system allowing very little, if any government involvement, interference or regulation. (P.117)Karl Marx: A german economist, theorist, sociologist, and philosopher most notable for his works criticizing capitalism and advocating communism, - a classless, collective socialist society(P.113)Means of Production:The mechanism for transforming labor into wealth (P. 113)Monetary policy:The collection of most-commonly used mechanisms that governments use to manage the collective resource of currency. (P. 129)

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